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	<title>The Medium, The Message &#187; TV Everywhere</title>
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	<link>http://www.themediumthemessage.com</link>
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		<title>Online TV stakes out pay/commercial model</title>
		<link>http://www.themediumthemessage.com/2009/10/29/online-tv-stakes-out-paycommercial-model/</link>
		<comments>http://www.themediumthemessage.com/2009/10/29/online-tv-stakes-out-paycommercial-model/#comments</comments>
		<pubDate>Thu, 29 Oct 2009 15:20:07 +0000</pubDate>
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				<category><![CDATA[Online]]></category>
		<category><![CDATA[Television]]></category>
		<category><![CDATA[TV Everywhere]]></category>

		<guid isPermaLink="false">http://www.themediumthemessage.com/?p=443</guid>
		<description><![CDATA[Don&#8217; t look for Time Warner&#8217;s TV Everywhere, &#8220;an attempt to make broadcast and cable programming available online, on-demand and free with a cable subscription,&#8221; to be a free ride once the cable bill is paid. AdAge takes a look at the venture based on panel discussions at the Cable &#38; Telecommunications Association for Marketing [...]]]></description>
			<content:encoded><![CDATA[<p>Don&#8217; t look for <a href="http://adage.com/mediaworks/article?article_id=139995" target="_blank">Time Warner&#8217;s TV Everywhere, &#8220;an attempt to make broadcast and cable programming available online</a>, on-demand and free with a cable subscription,&#8221; to be a free ride once the cable bill is paid. AdAge takes a look at the venture based on panel discussions at the Cable &amp; Telecommunications Association for Marketing Summit in Denver.</p>
<p>The advertising model calls for a full load of commercials.  &#8220;Jack Wakshlag, chief research officer at Turner Broadcasting, said a typical on-air episode of &#8216;The Closer&#8217; runs 18 ads, which is why it makes little to no revenue sense for the network to run the same episode online with a third of the same commercials against it. &#8216;If I can get 4.5 times my TV CPM online (the cost to advertisers to reach 1,000 viewers), I&#8217;d be happy and wouldn&#8217;t need to do anything,&#8217; he said. &#8216;But nobody&#8217;s getting four times TV CPMs online. Nobody at Hulu&#8217;s getting twice the TV CPMs. If people who already watch the show see it with a full commercial load, it&#8217;s still a chance to catch up on shows they miss.&#8217;</p>
<p>Over at Hulu, the ad-supported online-television site jointly owned by NBC Universal, News Corp. and Walt Disney, CEO Jason Kilar was cited widely last week for implying that a paid model was in the works. &#8220;We are capitalists. That&#8217;s why we&#8217;re <a href="http://www.hulu.com/" target="_blank">Hulu.com</a> and not Hulu.org. We&#8217;re very proud of the path we&#8217;re on now in terms of monetizing content. With our business model &#8230; the revenue needed to support that is anything but free.&#8221;</p>
<p>&#8220;Comcast and Time Warner Cable have both launched early trials of <a href="http://www.timewarner.com/corp/newsroom/pr/0,20812,1906715,00.html" target="_blank">TV Everywhere</a>,&#8221; AdAge says, &#8220;including a summer test in 15,000 Comcast households that included 17 cable networks. It&#8217;s been estimated that 30 million to 40 million cable households will be ready for authentication by summer 2010.&#8221;</p>
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